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Re: Rubio bill eliminates federal tax on Olympic medals

Originally Posted by MaggieD

I mean I wouldn't support the bill that would exempt it from income tax. I would, however, say that every single nickel spent by the family during that year be deducted from the award -- which, I would think, would put most recipients in the position of having to pay no tax at all.

It should be treated as income in my opinion. I somewhat agree with you that they should get deductions for that since our society has deductions, however, I think do not think that anyone should ever get any deductions.

“Most people do not listen with the intent to understand; they listen with the intent to reply.”
― Stephen R. Covey

Re: Rubio bill eliminates federal tax on Olympic medals

Originally Posted by muciti

It should be treated as income in my opinion. I somewhat agree with you that they should get deductions for that since our society has deductions, however, I think do not think that anyone should ever get any deductions.

So you want income taxes on gross revenue? That is not that way income tax works as income, but definition, is gross revenue less the expenses of producing that revenue. Do you want business taxes computed on the gross? That would really put a damper on economic development as new businesses would be paying taxes before they really even made money. Not a good idea.

Perhaps you are thinking of sales and VAT taxes, which are levied on gross amounts.

Re: Rubio bill eliminates federal tax on Olympic medals

Fame, thousands of dollars in prize money, and potentially millions in endorsements is incentive enough. Not ot mention the incentive of competitive success alone.

No need to complicate the tax code further with this stupid laws playing favorites in one sector over the other.

I disagree. In fact, that's the reason for incentivising. It's a loss leader for us (retail term, a deeply discounted item that sells highly marked up items). The business it generates brings in far more treasury income.

As you mentioned, a potential millions in endorsements, which would be fully taxed.

Re: Rubio bill eliminates federal tax on Olympic medals

Originally Posted by clownboy

I disagree. In fact, that's the reason for incentivising. It's a loss leader for us (retail term, a deeply discounted item that sells highly marked up items). The business it generates brings in far more treasury income.

Counting all Olympics (winter/summer), we have 2,549 medals (1,106 gold)

The next closest country has 1,204 (473 gold)

The stats show we have no need to create more incentive. The incentive our athletes have is obviously plenty, so no need to complicate the tax code further.

Re: Rubio bill eliminates federal tax on Olympic medals

Originally Posted by upsideguy

So you want income taxes on gross revenue? That is not that way income tax works as income, but definition, is gross revenue less the expenses of producing that revenue. Do you want business taxes computed on the gross? That would really put a damper on economic development as new businesses would be paying taxes before they really even made money. Not a good idea.

Perhaps you are thinking of sales and VAT taxes, which are levied on gross amounts.

if they didnt make any money then they wouldnt have anything to tax and it would not be appliciable. That statement aside I do believe that every person and business should pay a flat tax without deductions. Everyone should pay X% of their gross income. I know most do not agree with me.

“Most people do not listen with the intent to understand; they listen with the intent to reply.”
― Stephen R. Covey

Re: Rubio bill eliminates federal tax on Olympic medals

Originally Posted by upsideguy

1. the value of the medals is pretty nominal;
2. you can still offset this nominal income by the major expense of getting there; and
3. Why are Republicans wasting everyone's time with yet another piece of trivial legislation? I thought they were concerned about jobs? Oh yes, I forgot, they haven't a clue how to fix the economy and they have no real ideas of their own except to cut taxes in all circumstances (good economies, bad economies, morning, noon or evening... in their view tax cuts fix everything).

If it weren't for trivial legislation, we would have no legislation at all. Nice job 119th congress, the most inept in US history.

I'm not sure that value of a medal is minimal. The cost may be minimal, but the value is a different story. Value would depend on the particular significance of a medal.

A historic baseball caught by a fan is not worth a few bucks, but the collector value, and is taxed that value. At least that is my understanding. May be that a medal is the same. Any thoughts?

Your third point seems to be a good start for a new thread, of a continuation of the several already started on the same subject.

Re: Rubio bill eliminates federal tax on Olympic medals

Originally Posted by muciti

if they didnt make any money then they wouldnt have anything to tax and it would not be appliciable. That statement aside I do believe that every person and business should pay a flat tax without deductions. Everyone should pay X% of their gross income. I know most do not agree with me.

An expense is a deduction. You have to have deductions to calculate net income. Now, on personal returns there a schedule A deductions, which are not generally expenses associated with income production. My guess is that is what you are talking about.

OTH, Schedule C, D and E deductions are expenses associated with income production. You must have these deductions to calculate income.

My argument stands, your really can't say you are against ALL deductions....